Athira Pharma, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. On June 17, 2021, Athira released a statement indicating it had placed President and CEO Leen Kawas on leave and was reviewing “actions stemming from doctoral research Dr. Kawas conducted while at Washington State University.” Based on this news, shares of Athira plummeted by almost 40% on June 18, 2021.

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DraftKings Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. DraftKings is the subject of a report published by Hindenburg Research on June 15, 2021. The report alleges that the Company’s 2020 merger with Bulgarian company SBTech exposed it to black-market gambling and money laundering. According to Hindenburg Research, the Company is “a $21 billion SPAC betting it can hide its black market operations.” After the report was released, shares of DraftKings fell by more than 5% in intraday trading.

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Rackspace Technology, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Rackspace reported its first quarter 2021 financial results on May 10, 2021. The Company reported a first-quarter loss of $64 million, or $0.31 per share, and forecasted adjusted second-quarter earnings of $0.21 to $0.23 per share on revenue of $735 million to $745 million. The Company also forecast full-year earnings of $0.95 to $1.05 per share on revenue of $2.0 billion to $3.1 billion, compared to analyst forecasts of $1.01 per share on revenue of $3.02 billion. Based on this news, shares of Rackspace fell by more than 20% on the next day.

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Wunong Net Technology Company Limited

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Wunong issued a press release on May 19, 2021, stating it had “received written notification on May 18, 2021, from The Nasdaq Stock Market LLC that it no longer complies with Listing Rule 5250(c)(1) for continued listing in that it has failed to file its annual report on Form 20-F for the year ended December 31, 2020.” The Company advised the market that it “is working aggressively to complete its audit and file its annual report on Form 20-F by June 30, 2021 and accordingly, regain compliance with the Nasdaq Rules ahead of the deadline to submit its plan to regain compliance.” Based on this news, shares of Wunong fell by 6% the next day.

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Liberated Syndication Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Libsyn filed a notice with the SEC on May 18, 2021, stating that its “Consolidated Balance Sheet as of December 31, 2018, the Consolidated Statement of Operations for the year ended December 31, 2018, the Statement of Stockholders’ Equity for the year ended December 31, 2018, and the Consolidated Statement of Cash Flows for the year ended December 31, 2018, all as presented in the Company’s Annual Report on Form 10-K/A for the period ended December 31, 2018, as filed with the Securities and Exchange Commission on May 27, 2020” along with “the related interim financial statements and interim financial statements for the first three quarters of 2018,” should “no longer be relied upon due to errors in recording local sales and income tax, errors in recording VAT and General Sales Taxes, errors in recording withholding tax related to restricted stock vesting events, and errors associated with deferred tax calculations.” Libsyn stated that “the Company will correct the financial statements for 2018 and 2019 and the quarterly reports for 2020 in forthcoming amendments to the applicable Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.” Based on this news, shares of Libsyn fell by about 7% over the next several trading sessions.

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Tarena International, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Tarena filed a Form NT 20-F Notification of inability to timely file a Form 20-F for the fiscal year ended December 31, 2018, with the SEC on April 30, 2019. According to the Company, the delay in filing was caused by “the independent audit committee of the registrant’s board of directors [. . .] conducting a review of certain issues identified during the course of the audit of the registrant’s financial statements for the year ended December 31, 2018, including issues related to the registrant’s revenue recognition.” The Company then announced on November 1, 2019, that its financial statements from 2014-2018 could not be relied on due to inaccuracies, related-party transactions, and interference with the audit process. Based on this news, Tarena ADSs dropped by more than 9% on November 4, 2019.

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Coinbase Global, Inc.

The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Coinbase Global, Inc. (“Coinbase” or “the Company”) (NASDAQ: COIN) for violations of the securities laws.

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Reconnaissance Energy Africa Ltd.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. ReconAfrica is the subject of an article published by National Geographic on May 11, 2021, titled: “Oil company exploring in sensitive elephant habitat accused of ignoring community concerns: Namibians allege ReconAfrica disposed of wastewater unsafely, without permits, and ignored concerns about potential impact of oil drilling on water and wildlife.” The article claims that “ReconAfrica, a Canadian company exploring for oil and gas in Namibia upstream of a world-famous UNESCO World Heritage site that’s home to elephants and other wildlife is disposing of wastewater without permits, according to a government minister.” The article continues,  “drilling for the first test well began in January, and waste fluids are being stored in what appears to be an unlined pond, where they could leach into the ground and contaminate the water supply in this desert region,” and “Namibia’s minister of agriculture, water, and land reform, the agency responsible for water-related permits, told National Geographic in a written statement that ReconAfrica does not yet have permits approved to extract water to use in its drilling operations nor to dispose of the waste water.”

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NGM Biopharmaceuticals, Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. NGM announced on May 24, 2021, that it would be abandoning liver disease treatment candidate after failing to demonstrate efficacy in its Phase 2 study. According to the Company, “The 24-week Phase 2b ALPINE 2/3 was an equally randomized, double-blind, placebo-controlled study that assessed the efficacy, safety and tolerability of 0.3 mg, 1 mg and 3 mg doses of aldafermin once-daily subcutaneous injections compared to placebo. The study did not meet its primary endpoint evaluating a dose response showing improvement in liver fibrosis by >1 stage with no worsening of NASH at week 24 (p=0.55), analyzed using a dose response-driven statistical analysis plan (Multiple Comparison Procedure Modeling, or MCP-Mod). The study did achieve statistical significance versus placebo on certain secondary endpoints, including NASH resolution (at the 3 mg dose) and multiple non-invasive measures of NASH, including liver fat content reduction by MRI-PDFF, ALT, AST and Pro-C3 (at the 1 mg and 3 mg doses).” Based on this news, shares of NGM fell almost 40% in intraday trading.

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ContextLogic Inc.

The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. ContextLogic reported a first-quarter loss of $128 million based on sales of $772 million on May 12, 2021. The Company suffered from a loss in the quarter almost doubled on a year-over-year basis. The prior year’s first-quarter loss of $66 million came on $440 million in sales. Based on this news, shares of ContextLogic dropped in after-hours trading and traded down more than 25% in intraday trading on May 13, 2021.

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